Summary of Peraso Inc. Q3 2025 Investor Presentation Company Overview - **Company**: Peraso Inc. - **Industry**: Semiconductor, specifically focused on mmWave technology - **Business Model**: Fabless semiconductor company, designs chips and outsources manufacturing [2][23] Core Technology and Market Insights - **Technology Focus**: mmWave technology, operating in the spectrum of 24 to 300 gigahertz, emphasizing beamforming capabilities [3][4] - **Market Size**: The overall chipset market for mmWave technology is projected to grow from $5 billion to over $30 billion by 2033, representing a 25% compounded annual growth rate (CAGR) [4] - **Defense Market Growth**: The defense sector is expected to grow from $624 million to $7.179 billion, indicating a 42% CAGR [5] Key Applications - **Fixed Wireless Access**: High-speed internet access, with significant partnerships, notably with Ubiquiti, which has a valuation of approximately $30 billion [6][10] - **Stealth Communications**: Technology is crucial for military applications, providing low probability of detection and jamming, enhancing battlefield communication [12][13] - **Transportation**: Real-time high-speed internet for moving vehicles such as buses and trains [15] - **Professional Video Delivery**: Applications in virtual reality and real-time medical environments, such as operating rooms [16][17] - **Emerging Applications**: Autonomous vehicles requiring high data rates for information transfer [35][36] Financial Performance - **2024 Revenue**: Approximately $14.5 million, primarily from legacy memory products, transitioning to a pure mmWave focus [23][24] - **mmWave Revenue Growth**: Revenue increased from $1.5 million in the previous year to $3.8 million in the first half of 2025, with expectations for continued growth [24][25] - **Gross Margin Target**: Future target for mmWave products is approximately 50% gross margin, with recent performance nearing this target [25] Competitive Landscape - **Market Position**: Peraso is positioned as a leading supplier in the mmWave market, with limited competition following the exit of major players like Qualcomm [28][29] - **Unique Selling Proposition**: The technology's stealth capabilities and the ability to operate in unlicensed spectrum make it a preferred choice for various applications [27][31] Growth Opportunities - **BEAD Program**: A U.S. government initiative with a budget of $42.45 billion aimed at providing high-speed internet access, expected to benefit Peraso's fixed wireless business starting in 2026 [10][11] - **Military Applications**: Significant potential in military contracts, particularly in stealth communications and safety mechanisms to prevent friendly fire [14] Conclusion - **Investment Thesis**: The transition to a pure mmWave company is expected to drive growth, with increasing customer engagement and a robust pipeline of products in the market [21][26]

Financial Data and Key Metrics Changes - Total net revenue for Q2 2025 was $2.2 million, down from $3.9 million in the prior quarter and $4.2 million in Q2 2024 [20] - Product revenue in Q2 2025 was $2.2 million, compared to $3.8 million in the prior quarter and $4.1 million in Q2 2024 [20] - GAAP gross margin decreased to 48.3% in Q2 2025 from 69.3% in the prior quarter and 55.5% in the year-ago quarter [22] - GAAP operating expenses for Q2 2025 were $2.9 million, down from $3.2 million in the prior quarter and $6.8 million in Q2 2024 [22] - GAAP net loss for Q2 2025 was $1.8 million, or a loss of $0.31 per share, compared to a net loss of $0.5 million or a loss of $0.08 per share in the prior quarter [23] Business Line Data and Key Metrics Changes - Revenue from millimeter wave products was $2.2 million in Q2 2025, up from $1.5 million in the prior quarter and $0.7 million in Q2 2024, indicating a significant growth trajectory [22] - The company achieved over 2 million cumulative shipments of mmWave devices, highlighting its market leadership [6] Market Data and Key Metrics Changes - Fixed wireless access continues to be the largest and fastest-growing market opportunity for mmWave technology, driven by demand for high-speed broadband connectivity [8] - The company has seen a steady recovery in market demand and customer orders for fixed wireless access solutions throughout the first half of the year [8] Company Strategy and Development Direction - The company is focused on expanding its market presence in tactical communications and military defense applications, leveraging its mmWave technology [10] - The company aims to convert successful proof of concepts into initial production orders to sustain future growth [10][19] - The company is exploring potential strategic alternatives, including mergers or asset sales, to enhance its financial position [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for mmWave technology and its ability to address critical communication challenges in tactical defense environments [10] - The company anticipates record quarterly revenue contribution from mmWave products in Q3 2025, supported by a healthy backlog [26] Other Important Information - The company had approximately $1.8 million in cash and equivalents as of June 30, 2025, with a net change of approximately $1 million during the quarter [24] - The company is actively pursuing non-dilutive financing opportunities to strengthen its balance sheet [39] Q&A Session Summary Question: Can you provide more details on the military engagements and drone opportunities? - Management highlighted stealth communication capabilities as a key advantage in military applications, with ongoing engagements to adapt technology for drone use [32] Question: Can you confirm the legitimacy of the acquisition proposal and provide updates on the business outlook? - Management confirmed the validity of the proposal and indicated ongoing efforts to explore various capital-raising opportunities [39] Question: How is inventory trending, and have you burned through previous inventory issues? - Management noted improvements in inventory movement, with significant orders being filled and replenishment of certain products underway [41] Question: Are there opportunities for non-recurring engineering (NRE) work with the military? - Management confirmed that NRE is part of their strategy, with ongoing projects expected to lead to production and additional revenue [44][63]

Business Highlights - Peraso的mmWave模块被Tachyon Networks选中，用于最新的户外60 GHz固定无线解决方案[16] - 公司于2025年6月开始初步生产出货先进的60 GHz无线解决方案，以支持战术通信应用[19] - 公司于2025年6月获得了首个60 GHz无线解决方案的生产订单，该解决方案用于客户在教育市场中使用的视频系统[25] Technology and Applications - Peraso的mmWave技术本质上是一种隐形协议，具有低概率检测、低概率拦截和抗干扰能力[21] - Peraso的解决方案具有高数据速率（3 Gbps）、低延迟（<5 ms）和低干扰的优点，适用于专业视频传输等应用[25] - DUNE平台专为密集城市网络环境设计，采用集成的HW/SW解决方案，利用mmWave模块，具有DUNE接入协议、波束成形、多千兆位和低延迟等技术优势[16] Pipeline Growth - 客户机会渠道从2023年第四季度的11个增加到2025年第二季度的19个[26] - SKU机会渠道从2023年第四季度的70个增加到2025年第二季度的83个[28] - 生产中的客户SKU从2023年第四季度的31个增加到2025年第二季度的59个[29]

Company Overview - Peraso is a pioneer in high-performance 60 GHz unlicensed and 5G mmWave wireless technology[9] - The company has approximately 110 patents as of March 31, 2025[9] - Peraso is a global leader in mmWave communications, shipping in volume since 2016[11] Market Opportunity - The global mmWave technology market was valued at $34 billion and is forecast to grow at a 20% CAGR[20] - Allied Market Research estimates the Millimeter Wave Technology Market at $34 billion, projecting growth to $179 billion[17] - 5G mmWave-capable device unit shipments are expected to grow at a 204% CAGR[17] Financial Performance - Peraso's total revenue for FY 2024 was $146 million[59] - Q1 2025 total revenue was $39 million[59] - The company projects medium-term revenue growth at 50%+ and long-term growth at 30%+[59] Product and Technology - Peraso is focused on the 24GHz to 71GHz spectrum, leveraging mmWave beamforming[15] - The company has an integrated HW/SW solution utilizing mmWave modules[32] - Peraso's technology enables Internet access rivaling fiber performance, with benefits such as low cost of deployment and faster time to market[24]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.7 million, representing a 100% year-over-year growth compared to $1.8 million in Q4 2023 [7][25] - Full year 2024 total net revenue was $14.6 million, up from $13.7 million in 2023 [25] - GAAP gross margin increased to 56.3% in Q4 2024 from 47% in the prior quarter and negative 147.3% in the year-ago quarter [26] - Non-GAAP gross margin for Q4 2024 was 71.6%, compared to 61.7% in the prior quarter and negative 116.6% in Q4 2023 [27] - GAAP net loss for Q4 2024 was $1.6 million, or a loss of $0.37 per share, compared to a net loss of $8.9 million, or $12.48 per share, in the same quarter a year ago [29] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter wave products in Q4 was $3.7 million, compared to $1.5 million in Q4 2023 [25] - Full year product revenue was $14.2 million, up from $12.9 million in the prior year [26] - Operating expenses decreased by 20% year-over-year in Q4 2024, despite revenue doubling [8] Market Data and Key Metrics Changes - The demand for fixed wireless access (FWA) is projected to increase significantly, with global connections expected to reach 280 million by 2028 [11][12] - North American FWA has become the majority of all broadband net additions since 2021, with major carriers adding approximately 10.4 million FWA connections [12] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and expanding its market reach across new geographies and applications [9][10] - The introduction of the Dune MMA platform for dense urban applications is gaining traction, addressing the challenges of delivering reliable connectivity in populated areas [15] - The company is optimistic about the potential of its Wave technology in tactical defense and military applications, with initial production orders expected to commence in mid-2025 [20][22] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in customer demand and purchase orders, indicating the end of the inventory correction impacting fixed wireless access customers [13][39] - The company anticipates significant growth in MMwave revenue throughout 2025, driven by increasing order backlog and ramping customer production [24] - Management expressed optimism regarding the BEAD program, which aims to improve access to high-speed Internet and could benefit the company's solutions [19][63] Other Important Information - The company had $3.3 million in cash and cash equivalents as of December 31, 2024, compared to $1.3 million at the end of Q3 2024 [31] - Adjusted EBITDA for Q4 2024 was negative $400,000, an improvement from negative $5.9 million in Q4 2023 [30] Q&A Session Summary Question: Inquiry about the $3.6 million order and its fulfillment timeline - Management indicated that the order fulfillment will be reasonably linear throughout the year, with some weight towards the second half [36][37] Question: Trends in customer inventory and potential new orders - Management confirmed a more diversified customer base and expressed optimism about new orders coming in 2025 [38][39] Question: Engagement in military applications - Management stated that they are currently focused on a third of the potential military applications and have ongoing engagements for tactical communication [40][41] Question: Impact of AI trends on connectivity needs - Management noted that there is a growing demand for high-speed data transfer in enterprise environments, which aligns with the company's capabilities [45][46] Question: Expectations for millimeter wave sales ramp-up - Management expects a good increase in millimeter wave sales year-over-year, with some lumpiness in revenue from quarter to quarter [52][54] Question: Timeline for military applications to convert to production - Management indicated that most military opportunities are expected to convert to production in 2026, with the first application moving quickly [59][60] Question: Anticipated contributions from the BEAD program - Management expressed hope that the BEAD program will start to show effects this year, aligning with the administration's push for high-speed Internet access [62][63]